Friday, March 11, 2016
Cyprus banks continue to get stronger as economy improves
But John Hourican, the chief executive of the Bank of Cyprus, told CNBC on Thursday that following an economic recovery in Cyprus (it has just exited its bailout early and with money to spare) Russians and Ukrainians were still depositing money in the country's financial system.
"It's a country in transition, the business services and wealth preservation engines that exist in Cyprus are still there," he told CNBC in Nicosia. Although the level of Russian money in the country had "gone down significantly", he said.
"If we look at international business about a third of those who are with us are Ukrainian and Russian in terms of genesis but if you look at those businesses they are real trading businesses.
Hourican said that Cyprus' banking system was well on its way to recovery although there were still issues to iron out.
"I think there are enough positives that are real for us to believe the recovery is underway," he said.
This is still a long term story but my view is that as things improve a revaluation will take place. You can still buy Bank Of Cyprus for 30% less than turnaround expert Wilbur Ross paid for his shares.